First-Time Home Buyer Programs in Missouri

Missouri Housing Development Commission (MHDC) Programs:

First Place Loan Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or veterans using the program for the first time.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with competitive rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $99,440 for a 1-2 person household in St. Louis County as of 2025).
• Minimum credit score of 640 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required if using down payment assistance.
• Purchase price limit of $349,525 (non-targeted areas) or $427,198 (targeted areas).

Cash Assistance Option:

Benefits: Offers 4% of the loan amount (e.g., $8,000 on a $200,000 mortgage) as a non-repayable grant for down payment and closing costs; available with First Place or Next Step loans.
Eligibility: Must use an MHDC first mortgage; income and purchase price limits apply (same as First Place).

Non-Cash Assistance Option:

Description: Provides a lower interest rate on the first mortgage instead of cash assistance; designed for buyers who can cover upfront costs but want long-term savings.
Requirements: Must pair with a First Place or Next Step loan; same income and purchase price limits as First Place.

Local Programs:

St. Louis

St. Louis Affordable Housing Program: Offers up to $15,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income must be at or below 80% AMI (e.g., $66,750 for a family of four); targets city residents.

Kansas City

Kansas City Homebuyer Assistance: Provides up to $20,000 as a 0% interest deferred loan (repayable upon sale or refinance) for first-time buyers; income capped at 80% AMI; requires $500 buyer contribution.

Springfield

Springfield First-Time Homebuyer Program: Offers up to $10,000 as a deferred loan (0% interest, due upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 30% of annual mortgage interest (max $2,000 yearly) for first-time buyers or those in targeted areas; fee applies; combinable with MHDC loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Missouri areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.